PSA L&P - Reports: Account balance report balance does not add up as expected

Account Balance Report balance does not add up as expected

An Account Balance Report for an income or expense account should only be run for one fiscal year. If the report crosses fiscal years, the beginning balance +/- debits and credits will not equal the ending balance. 

Income and expense accounts are temporary accounts that are closed out at the end of each fiscal year. At the end of the year, the amounts are rolled into a net asset account. The Account Balance Report does not reflect the accounts being closed out at the end of the fiscal year. In other words, it does not show the Income Account being debited and the Net Asset Account being credited. Nor does it show the Expense Account being credited while the Net Asset Account is debited. Because those year-end transactions are omitted from the report, the balance will not be correct when crossing fiscal years.

If the fiscal year is July 1, xxx1 thru June 30, xxx2, running the report for July 1, xxx1 thru June 30, xxx2 the beginning balance is zero -0- and the debits and credits will calculate to the ending balance.  





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